The followig is the capital structure of a company equity share @100 of 40Lakh, 9% preferrence share of 10Lakh, 11% debentrue of 30Lakh, retained earning 20LAkh. Current market price of equity share is 2000, for last year company paid dividend of 25% and it is likely to grow at 5% every year. corporate tax 30% , shareholder tax 20% compute WACC
April 09, 2020
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Calculate weighted average marginal cosst of capital of a company if it raises 10cr. Next year , given the following information :- 1, Next expected dividend is 3.60 and expected growth rate is 7%, 2. income tax rate is 40%, 3. amount will be raise dby equity and debt equally proportions. 4. aditional issue of equity shares will result in next price at 32 per sshare. 5. debt capital raised by the way of term loan will cosst 15% for first 2.5cr, 16% for balance. Select the correct answers
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